Automark

The Customs Wing has updated and issued the units of measurements used in import and export documents, in order to ensure proper valuation of goods. This will further improve consistency, transparency, and uniformity in data recording as per international standards. All field operation collectors have been asked to ensure proper implementation.

In order to comply with the World Customs Organization (WCO), the Federal Board of Revenue (FBR) has notified standard units of quantity/measurement (UoM) of 7,354 items/goods

World Customs Organization recommends the use of standard units of quantity to facilitate the collection, comparison, and analysis of international statistics, based on the harmonized system of commodity description.

The standard units of measurement were previously notified by the Federal Board of Revenue in 2012. World Customs Organisation had issued updated recommendations subsequently, but they were not updated by FBR since then.

The standard units of quantity were previously notified by the Board on 6th August 2012. Due to adoption of HS-2017, PCT codes have been added/deleted and certain new PCT codes have been created. Accordingly, an updated CGO has been prepared to accommodate these changes.

The standard units of quantity are: weight, kilogram (kg) and carat (carat); length, meters (m); area, square meters (m2); volume, cubic meters (m3) and liters (l); electrical power, 1,000 kilowatt-hours (1,000 kWh) and number, pieces/items (u), pairs (2u), dozens (12u), thousands of pieces/items (I,000 u) and packs (u (jeu/pack))

The importers/clearing agents/shipping agents and all others concerned are directed to provide invoices/documents/information in accordance with the new UoMs prescribed by this CGO.

Updated units of measurement have been notified and will become binding for all field formations of Customs as well as importers/exporters.

FBR has informed customs that a necessary provision shall be created in the Customs Computerized System for this purpose.

FBR has said that no document, including Goods Declaration, shall be accepted after September 30, 2019, if the information regarding units of quantity declared/shown is not in accordance with the new Custom General Order.

Courtesy: Pro Pakistani

After coming up with a limited edition Boondock for the D-Max, it looks like Isuzu Philippines Corporation is ready to give the very same treatment to its mu-X. Launching at the end of this month is the first-ever mu-X Boondock.

Not much is officially known about the mu-X Boondock except for this single blurry teaser photo which is part of Isuzu’s event invitation flyer for their “Grand mu-X Family Event” at the Filinvest Tent in Alabang on September 28.

Based on the photo though, the mu-X Boondock will be getting decked out in all sorts of off-road centric gear. It starts with new bumper extensions and fender flares to better fit the beefier wheels and tires package, likely echoing the D-Max Boondock’s 265/70 R 17 All-Terrain Tires. This is complemented by new roof cross bars as well as Boondock decals. It’s a safe assumption too that the mu-X Boondock will also gain a raised ride height, like the D-Max Boondock, thanks to new monotube nitrogen-charged performance shock absorbers. It must be remembered that the D-Max version has a rock-crawling capable 247 millimeters of ground clearance.

About what will power the mu-X Boondock, again Isuzu is keeping this info close to its chest. But again, the safest assumption would be that the mu-X Boondock will be based off the fast-selling 3.0 LS-A 4×2 variant, although here’s hoping that Isuzu would learn from the shortcomings of the D-Max Boondock and sell the mu-X Boondock as a flagship 4×4 instead. Regardless, all eyes will be on Isuzu this September 28.

Courtesy: CarGuide.ph

The 17th China International Motorcycle Trade Exhibition (hereafter referred to as CIMAMotor 2019), the largest motorcycle exhibition in Asia, will be held on September 20-23, 2019 in Chongqing, China.

CIMA Motor has been held annually since 2002. Says CIMA Director Wei Wang, “It has become the world’s largest event focused on commuter motorcycles, and one of the most significant in the motorcycle industry worldwide.”

CIMAMotor, as one of the most important platforms for new product launch in the industry, will spare no efforts to strengthen its position not only as a platform for brand displaying, product trade, technology transfer and information releasing, but also a platform for innovative products representing the future trends of energy saving and environmental protection.

CIMAMotor Key Facts:

• 386 exhibitors in attendance
• 362 domestic companies, representing 90% of the production capacity of the Chinese motorcycle industry
• 24 foreign companies, including Honda, Harley-Davidson, Suzuki, Peugeot, Piaggio, Kawasaki, Benelli and PEM
• Approximately 1,000 vehicles on display
• Over 100 new models were launched at the event
• CIMAMotor 2010 attracted more than 70,120 visitors; including 21,736 from the motorcycle trades
• CIMAMotor 2011 also featured a wide scope of discussion panels, symposiums and riding activities. These included:
• Events organized and sponsored by Harley-Davidson, Honda, Continental Automotive and IDIADA Automotive Technology S.A.
• The 2010 Chongqing International Motorcycle Riding Activity program attracted the participation of 17 leading motorcycle clubs, including HOG (Harley Owners Group) China; BMW Motorrad Club China, among others
• Domestic and international media participation: nearly 300 accredited media professionals on-site (including Ultimate MotorCycling)
• Show news and information distributed globally to 1000 media outlets

It also offers the opportunity to meet exhibitors identified through the event’s website face-to-face; as well as support throughout the importing process. The trade shows features extensive new motorcycle products and cutting-edge technologies to visitors, and depending on word class hardware condition of the venue, CIMAMotor also set up professional experience space for crossing-country, training skills, and testing drive. In order to add visual interest and participation to visitors and making experiential motorcycle exhibition, CIMAMotor is going to open up motorcycle experiential and interactive zone, motorcycle stunt wards, second-hand motorcycle trading zone.

At present, international luxury motorcycle manufacturers have entered the main markets in China and domestic brands are on the rise. Having been successfully organizing motorcycle riding and other cultural activities for several years. To show the vitality of China motorcyclists, CIMAMotor sinvite foreign motorcycle tour operators from famous motorcycle touring destinations to join in the exhibition. They will meet with more than 300 motorcycle clubs and provide numerous tour choices for nearly 20,000 motorcycle enthusiasts at CIMAMotor.

An entire agenda was set in order to guide the members present as to what events were to take place at what time. For example, few of the several topics discussed is as follows:

• Motorcycle Policy and Guidance Analysis
• Interpretation and Development Exploration of Motorcycle “Oil to Electric” Trend
• Development of Electric Motorcycle Under the New National Standard of Electric Bicycle
• Development Trend and Overseas Investment Situation of Electric Motorcycle

Mr. Wang adds: “The dynamics of the market position, and the rapid rise of the Chinese motorcycle industry are showcased at CIMAMotor. This show is China’s number one domestic and international platform. Its unmatched scope of brands, vehicles, technology, electronics and accessories, as well as business opportunities, make CIMAMotor is the destination of choice for manufacturers and buyers.”

“CIMAMotor is the first stop, and ‘one-stop’ for anyone who wants to discover and engage with motorcycling in China. The past three decades have seen exponential progress in an industry that is poised to raise its game to the next level. The opportunities and challenges are unique, and the potential rewards for business partners, considerable. As CIMAMotor wishes to help turn those challenges and opportunities into success, we welcome international visitors as our honored guests.”

International journalists were also invited to this auspicious event. Automark’s Editor-in-chief Mr.Hanif Memon has also been part of the media team.

CIMAMotor focuses on everything about motorcycles. After being fostered for several years, it has become a reliable promotion platform and strategic partner of the exhibitors.

 The Federal Board of Revenue (FBR) has moved a summary to the federal cabinet for excluding import of storage batteries, auto parts, tyres and tubes from purview of retail price taxation. This mean that tax would be imposed at import price, not at retail price.

The tax machinery also proposed abolishing of 3 percent value addition tax on the goods specified in the Third Schedule of the Sales Tax Act, 1990 as it resulted to imposition of sales tax at rate of 20 percent instead of standard rate of 17 percent.

The content of official summary moved to the cabinet reads that under the Sales Tax Act, 1990, in general, the supplies of goods are charged to sales tax at a specified percentage of sale value i.e. the consideration in money received by the supplier.

But in case of the goods specified in the Third Schedule of the Sales Tax Act, 1990, sales tax is charged on the basis of retail price to be paid by the end consumer as fixed by the manufacturer. “We have proposed changes to remove anomalies,” said a top official of the FBR, and added that after getting approval of the cabinet, the FBR could issue SRO to make this amendment effective.

According to the summary, the objective is to ensure payment of sales tax onvalue addition carried out at subsequent stages of supply chain at the manufacturing stage.

Through the Finance Act, 2019, the relevant provisions in sections 2 and 3 of the Sales Tax Act were amended to include imported goods in purview of such retail price taxation. The FBR official cited example that if certain product was imported and its retail price stood at Rs100, then the 17 percent sales tax were charged but actually its used to be charged at 20 percent at retail price which did not have any rationale. The auto manufacturers asked the government and FBR to remove anomaly to this effect, said the FBR official.

The imported goods as are not raw materials or intermediary goods and are not subjected to Customs duty at a rate below 16 percent are also subjected to value addition tax at 3 percent under the Twelfth Schedule to the Sales Tax Act, 1990, which is payable in addition to sales tax at standard rate. Since, the objective of both retail price taxation and 3 percent value addition tax is to recover sales tax at import stage that otherwise would have been paid at subsequent stages of supply, the simultaneous application of both provisions creates hardship for the traders/businesses.

Accordingly, it is deemed appropriate that application of 3 percent value addition tax on items in the Third Schedule to the Act may be withdrawn.

Moreover, storage batteries, auto parts and tyres and tubes are also included in the Third Schedule for retail price taxation. However, the supplies of the same as made to the automotive manufacturers or assemblers have been excluded from purview of Third Schedule. No such exclusion is available to these goods as imported by automotive manufacturers or assemblers.

Since such imported goods are also meant for use in vehicles to be manufactured and not for sale to general public, the application of retail price taxation, thereon, is not justified.

In view of the legal position, it is proposed that, (i) S. No. 43 (storage batteries), 44 (tyres and tubes) and 49 (auto parts) of the Third Schedule may be amended to exclude these goods from purview of retail price taxation if imported by automotive manufacturers or assemblers; and ii) the Twelfth Schedule to the Sales Tax Act, 1990, may be amended to provide that value addition tax shall not be charged on the goods specified in the Third Schedule.

Both the amendments can be made by the federal government in exercise of its powers under proviso to clause (a) of sub-section (2) of section 3, and the proviso to sub-section (2) of section 7A of the Sales Tax Act, 1990, respectively. The draft notification duly vetted by the Law Division and approved by the federal cabinet is solicited to the proposal, the FBR said.

Courtesy: The News

The electric vehicle policy that was proposed by the Ministry of Climate to the Cabinet Division has been rejected while the cabinet division has formed a 12 member council that consists of members from both the Ministry of Climate Change and Ministry of Industries and Production.

When Prime Mister was charring the first meeting of the Committee on Climate Change, he was presented a comprehensive and detailed briefing on researches made on environment-friendly impacts and economic benefits of electric cars. After that, the Prime Minister gave directions to form a policy and mechanism for adopting electric-cars within 15 days.

Following the events, during a news conference, four months ago advisor to the Prime Minister on Climate Change Malik Amin Aslam said that 30 percent of the vehicle system in the country will be converted to electric cars by the year 2030. He further added that the change would help reduce oil imports and also make the environment better. 

After that during a news conference, Advisor to Prime Minister Malik Amin Aslam claimed that the ministry of Climate Change is ready to present Electric Vehicle Policy in the next cabinet meeting. He mentioned that an electric vehicle policy has been formulated which is set to give a new direction to the transport sector. He said the policy will be presented before the next cabinet meeting for approval.

He added that a special economic zone will be established where electric rickshaws, cars, and buses will be manufactured. This will also create immense job opportunities for youth.

Well-placed sources told print media that after the announcement of Malik Amin Aslam’s decision regarding approval of Electric Vehicle Policy, Ministry of Industries and Production wrote a letter to the Ministry of Climate Change and said the preparation of electric vehicles is not the jurisdiction of Climate Change ministry.

Finally to end the row the Cabinet division stepped to end the row between the ministries over formulating electric vehicle policy.

The Cabinet Division pointed out that under schedule – 11 to the Rules of Business, the federal government functions; ‘National Industrial Planning and Coordination’ and ‘Industrial Policy’ are allocated to the Ministry of Industries and Production. The allocated business of the Ministry Of Climate Change does not relate to the formulation of an industry-related policy.

With consultation from the cabinet, it was then decided on 21st August 2019 that even though the Climate Change Ministry doesn’t have the function to develop any industry-related policy and it strictly falls under the ‘Industry and Production’ division. However, it was said that in this case, Climate Change ministry has advancement in formulating an E-Vehicle Policy hence the industrial ministry should consult the Climate Change ministry and also with their advice ensure that it meets the necessary Industrial Environmental Standards.

On 5th September a committee constituting of Additional secretary-II of Industries and Production was appointed the chairman other members include Joint Secretary of Industries and Production, Representative of commerce, Representative from Climate Change, Representative of Federal Board Revenue, Representative from the board of investment, Chief Executive officer of Engineering development, Engr. Asim Ayaz from Engineering board revenue, Assistant  Chief of Industries and Production and Shafqat Abbas of Industries and Production. Further, it was said that the secretariat of Electrical Vehicle Policy formation would be EBD.

Following the next series of events the advisor to PM on commerce issues, Abdul Razzaq Dawood, held a meeting with advisor of PM on Climate Change Malik Amin in which it was decided that the Ministry of Industries and Production will formulate a comprehensive E-vehicle policy that addresses environmental issues and also promotes healthy competition in the auto-sector along with viable options for consumers at each price point.

Dawood greatly emphasized the need to control emissions for a healthy environment. He said that the forthcoming policy will be implemented under the broader auspices of the Auto Development Policy (ADP) 2016-21 after consultation with concerned stakeholders. The main agenda of the policy would be to introduce electric vehicles without causing damage to the current local auto-sector and the country’s industrial base. 

Aslam, the advisor of Climate change, held a meeting with Indus Motor Company CEO, Ali AsgharJamali and said that the auto policy 2016-21 does not meet the requirements of electric vehicles and therefore a new auto policy would be introduced. The representative of local vehicle manufacturers also met Advisor to PM on Climate Change and convinced him that their business will be affected due to electric vehicles.

They said the Ministry of Climate Change since then has surrendered before the Ministry of Industries and Production and wish not to continue working on Electric Vehicle Policy by the Ministry of Industries and Production.

Talking to press, spokesperson of Ministry of Climate Change, Muhammad Saleem confirmed that the ministry did not present Electric Vehicle Policy before cabinet due to interference of the Ministry of Industries and Production.

He said there is a need to shift on electric vehicles and the ministry of Climate Change wanted to import numbers of electric vehicles in Pakistan initially. He said there is also a need to bring revolution in the transport sector of the country.

But with the current conditions of the economy and the fall in the auto sector, Pakistan isn’t ready for the change as electric cars are more costly. However, if the policy is announced it will be a huge developmental step towards the future.

by Hawwa Fazal / Hanif Memon

The market was abuzz with rumors that the Suzuki Alto car prices would again be increased. After the last price increase, their statement said “The above prices are subject to change without notice and prices at the time of delivery shall apply. Any government tax applicable will be charged to the customer.”

According to industry sources, Suzuki Alto might be going for another price increase that would be somewhere around 25k to 40k, however, the news is not confirmed yet that on which variant they will increase the price. This would be their third price revision since the car was launched back June 2019.

The Auto industry is going through a hard time especially with the depreciation of the rupee value in the market. However the dollar has gong slightly down by 3-4%, so it was expected that the automakers would revise prices to go downward. At the moment it does not seem likely that it would be happening anytime soon.

When the car was launched the introductory price of the Pak Suzuki Alto VX was Rs.981,000, Alto VXR was for 1,083,000 and Alto VXRL AGS was for 1,277,000. However, as tax became a burning issue at that time and the rupee devalued many companies raised their prices. Among them, there was Suzuki Alto 660cc and it was confirmed on 30 July 2019 that the prices were revised which were implemented from 1^st August 2019 and were as follows:

Note that while the above-mentioned prices are inclusive of Ex-factory price and freight charges incurred on the vehicle to reach dealership premises, they are exclusive of Advance income tax.

Now, this was quite a shock to the buyers but it was expected after the cost of high taxes and duties imposed by the government.

But another price increase at this time suggests that Kia Picanto which was introduced last week to compete against Suzuki has failed to cause any stress lines on the Suzuki Automakers and they’re least bothered with the competition offering a better car but with a higher price.

Although the stress goes on to the consumers who are struggling to find budget cars especially with imported cars out of the option and locally produced car makers hiking their prices despite a decrease in the US dollar.

Is the Auto Industry really troubled and losing business? 

by Hawwa Fazal

Hongqi brought two concept cars to Germany; the S9 supercar (see earlier post), and this E115 electric SUV.

The E115 previews Hongqi’s new flagship pure electric SUV, which will be launched on the Chinese car market next year. It will be an ultra luxurious four-wheel drive vehicle with L4 autonomous driving capabilities and air suspension. Hongqi claims a 600 kilometer range and a 0-100 in 4 seconds.

The E115 is the first Hongqi fully designed by former Rolls-Royce design director Giles Taylor, who is working for Hongqi now. There are defenitely some Rolls-Royce design clues on the E115, especially from up front, but overall is seems a great looking car.

Hongqi calls their new design direction ‘Smart Blade’, which sounds very cool. May there be more.

Geely has been on an acquisition spree and already owns a stake in Daimler AG and owns Volvo Cars. The company has now helmed a round of investment which raised 50 million euros (USD 55 million) to help Volocopter launch its VoloCity air taxi on a commercial basis within the next three years, according to a Bloomberg News report. Geely and Volocopter will form a new joint venture firm that would eventually bring flying cars to the Chinese market.

Volocopter is also involved in talks to raise even more funds by the end of 2019. Daimler has owned a stake in the company from 2017.

Geely’s investment makes sense in light of the fact that China is trying to get more motorists to swtich to the use of more environment friendly vehicles in a bid to reduce the massive levels of air pollution and the country’s dependence on oil supply from overseas.

Li has been diversifying Geely by venturing into different fields like microchips and low-orbit satellites. Back in 2017, Geely had announced that it was acquiring American firm, Terrafugia which had ambitious plans to commercialize a flying car by 2019. Geely had also finalized an agreement with China Aerospace Science and Industry Corp., which is owned by the Chinese government to build “supersonic trains” using homegrown technology.

“Geely is transitioning from being an automotive manufacturer to a mobility technology group,” Li said.

Many other companies are working on their very own versions of “flying cars” with the most mentionable being Toyota, Uber, Airbus SE and Boeing. Japanese company, NEC Corp. just last month made a flying car that managed to hover over the ground for about one month.